Flounder Construction Company began work on a $417,400 construction contract in 2020. During 2020, Flounder incurred costs of $267,500, billed its customer for $201,500, and collected $176,000. At December 31, 2020, the estimated additional costs to complete the project total $157,575.

Prepare Flounder’s journal entry to record profit or loss, if any, using

(a) the percentage-of-completion method and

(b) the completed-contract method.

Answer rating: 100% (QA)

Answer a Total eastimated cost of contract 26750015... View the full answer